US Treasury buys Argentine pesos in currency market
First FX intervention since 2011 comes as Washington announces $20bn swap line with BCRA
The US Treasury has directly intervened in Argentina’s currency market in another attempt to stabilise the country’s economy.
Scott Bessent, the US Treasury secretary, said on October 9 that Argentina had faced “a moment of acute illiquidity”. He added that although the “international community” was behind the country, only the US could “act swiftly”.
“To that end, today we directly purchased Argentine pesos,” he wrote on social media.
This was the fourth time since 1996 that the US has intervened
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Foreign Exchange
Saudi fund leaves $3bn in Pakistan’s central bank for another year
Deposit accounts for around a fifth of SBP’s dollar reserves
Argentina and the fear of floating
Economists believe the country’s authorities must fully liberalise the peso before it is too late
Market interaction key to effective FX interventions – panel
Central bankers from the Americas say data and communication help to reduce volatility
Argentina rejects rumours it will adjust exchange rate policy
Economy ministry says it will not make changes to currency band, media reports
BCRA deputy governor: weak peso not tied to structural issues
Investors flocking to dollar because of temporary risk aversion ahead of elections, Werning says
Ex-BCRA governor: Argentina was not ready for volatility
But tax exemption on exports and US support have bought Milei time until October poll, says Redrado
Argentina sells $379m in FX market to prop up peso
BCRA intervenes for second time since implementing managed float regime in April
Book notes: King dollar, by Paul Blustein
A well-researched overview of the position of the US currency, providing an optimistic view on its future